Cisco to remain a 'products' company: Chambers

SAN FRANCISCO: For Cisco, the global switch and router giant, big and rapid

growth will now happen from the sale of new and advanced technologies that

the company is currently dealing in. These include security, storage, IP

telephony, optical, and wireless.  

According to John Chambers, president and CEO of Cisco "Growth from the

advanced technology products will be over 30 percent in the future, which

Cisco's routers and switches will grow at about 10 to 12 percent".

Compared to routers and switches, which contribute about 80 percent to

Cisco's kitty, sales from new and advanced technologies comes the remaining 20

percent. Interestingly, while many of the other telecom equipment companies are

also looking at big revenues coming from services, Cisco will focus on being a

products company. "Our focus will be to ensure that our customers and

partners are able to offer lot many more services to their end customers",

Chambers added.

According to Chambers the future of of IT companies, jobs and countries that

do well in IT will depend on four factors - educations systems, IT

infrastructure, capability to innovate in the market, and Government's support.

Chambers was addressing the media about Cisco's integrated network strategy,

that will evolve into integrated services and then integrated applications. Chambers also added that

the company will be investing more in India and China. According to Ned Hooper,

vice president, business development, Cisco, "At the moment we are looking

at several companies in India in the areas of wireless and wireless

applications, gaming, security, and component level development for acquisition.

Most of these are 70-90 member teams with about $ 20 to 30 million revenues."

CyberMedia News

The author was hosted in San Francisco by Cisco.